Steven L. Beshear Governor

Leonard K. Peters Secretary Energy and Environment Cabinet

Zack N. Womack Womack Law Office, LLC 304 First Street P.O. Box 637 Henderson, KY 42419-0637

Commonwealth of Kentucky Public Service Commission

211 Sower Blvd. P.O. Box 615

Frankfort, Kentucky 40602-0615 Telephone: (502) 564-3940

Fax: (502) 564-3460 psc.ky.gov

June 25, 2015

RE: Case No. 2014-00371 Kentucky Utilities Company

David L. Armstrong Chairman

James W. Gardner Vice Chairman

Daniel E. Logsdon Jr. Commissioner

The Commission acknowledges receipt on June 16, 2015 of your letter, a copy of which is attached hereto, addressed to one of our rate analysts, regarding the above referenced case and your client's objection to the amount of demand charges he pays to Kentucky Utilities Company for the seasonal operation of his farming activities. Your letter is being treated as ·an official protest and will be placed in the case file of this proceeding. The Commission will take your concerns into consideration in its review and decision in this matter.

Please be advised that neither the Commission's rate analysts nor any other members of the Commission's staff have the authority to change the electric rates charged to your client by Kentucky Utilities Company. Rates can be changed only by a majority vote of the three individuals who are appointed as Commissioners of the Public Service Commission. The Commissioners have the authority to change a utility's rates only upon application by that utility or upon complaint filed either by an interested person or by the Commission on its own motion.

The Attorney General has intervened in this matter. You may want to make the Attorney General aware of your concerns by contacting him through his Office of Rate Intervention, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601-8204.

You may view all documents filed in this case on the Commission's website at http://psc.ky.gov.

KentuckyUnbridledSpirit.com An Equal Opportunity Employer M/F/D

Zack N. Womack June 25, 2015 Page 2

Thank you for your letter of interest and concern in this matter.

RGR!ph

KentuckyUnbridledSpirit.com

Jeff Derouen Executive Director

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An Equal Opportunity Employer M/F/0

CERTIFIED MAIL

Ms. Leah Faulkner

WOMACK LAW OFFICE, LLC 304 First Street

Post Office Box 637 Henderson, Kentucky 42419-0637

Telephone: 270/826-5040 Facsimile: 270/826-9080

E-Mail : Info@womacklawofficellc.corn

June 11, 2015

Rate Analyst, Electricity and Gas Rate Division of Financial Analysis

P. 0. Box 615 211 Sower Boulevard

Frankfort, Kentucky 40602-3460

Re: David Shouse Farms . · ··case No: ·2o14-o0'371

Dear Ms . . Faulkner,: f• • ,.f ...

. . Please be advised that Womack Law Office, LLC, represents the interest of David

Shouse, d/b/a David Shouse Farms, concerning Kentucky Utilities Case No. 2014-00371, and the circumstances under which he is currently paying an inordinate amount of fees

to the KU facility, the direct and proximate result of his being charged a demand fee

that is most unreasonable when compared to the seasonal nature of his business.

It is understood and appreciated the necessity for certain demand charges;

however, the seasonal work, i.e., farming, and the utilities associated with farming that are operated on a very limited seasonal basis enable KU to realize a windfall situation

with respect to the customer that is, as a practical legal term, unjust enrichment,

concerning the electrical charges made against Mr. Shouse.

In order to substantiate or validate the need or necessity for demand charges,

there must be some substantial likelihood that the demand will be exercised by the customer. In the. circumstances of David Shouse Farms, that demand or the demand charges is not realistic with the. nature of the business in which Shouse Farms is involved, which is seasonal. · Ihs understood that demand charges could be based on

•

Leah Faulkner June 11, 2015 Page 2

the highest level of usage during a period, but that period of usage or standard continues for other customers throughout the course of the year and does not for the

Shouse Farms.

It should be noted that Shouse Farms went to great expense to h~ve the utilities run to its particular facility and the application of the demand charge against the customer throughout the course of the entire year cannot be justified, nor would it pass, in our opinion, ~ega I muster. KU did not pay anything in the rufinlng of the line to ·· our client's farming operation. That undertaking was paid for by Shouse Farms. As a direct result, the demand charge would be collecting something other than any fixed charge that would exist with respect to this particular customer because Shouse Farms paid for running of the service to its property. This is tantamount to gouging.

For these reasons, we respectfully request you reconsider Mr. David Shouse's

request for an adjustment; otherwise, we intend to seek legal redress.

Respectfully,

WOMACK LAW OFFICE, LLC

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c: David Shouse

*Denotes Served by Email Service List for Case 2014-00371

*Honorable David J. BarberieManaging AttorneyLexington-Fayette Urban County GovernmentDepartment Of Law200 East Main StreetLexington, KENTUCKY 40507

*Honorable David F BoehmAttorney at LawBoehm, Kurtz & Lowry36 East Seventh StreetSuite 1510Cincinnati, OHIO 45202

*Andrea C BrownLexington-Fayette Urban County GovernmentDepartment Of Law200 East Main StreetLexington, KENTUCKY 40507

*David BrownStites & Harbison, PLLC1800 Providian Center400 West Market StreetLouisville, KENTUCKY 40202

*Joe F ChildersJoe F. Childers & Associates300 Lexington Building201 West Short StreetLexington, KENTUCKY 40507

*Jody Kyler CohnBoehm, Kurtz & Lowry36 East Seventh StreetSuite 1510Cincinnati, OHIO 45202

*Robert ConroyLG&E and KU Energy LLC220 West Main StreetLouisville, KENTUCKY 40202

*Larry CookAssistant Attorney GeneralOffice of the Attorney General Utility & Rate1024 Capital Center DriveSuite 200Frankfort, KENTUCKY 40601-8204

*Honorable W. Duncan Crosby IIIAttorney at LawStoll Keenon Ogden, PLLC2000 PNC Plaza500 W Jefferson StreetLouisville, KENTUCKY 40202-2828

*Gregory T DuttonAssistant Attorney GeneralOffice of the Attorney General Utility & Rate1024 Capital Center DriveSuite 200Frankfort, KENTUCKY 40601-8204

*Gardner F GillespieSheppard Mullin Richter & Hampton LLP1300 I Street NW11th Floor EastWashington, DISTRICT OF COLUMBIA 20005

*Angela M GoadAssistant Attorney GeneralOffice of the Attorney General Utility & Rate1024 Capital Center DriveSuite 200Frankfort, KENTUCKY 40601-8204

*Janet M GrahamCommissioner of LawLexington-Fayette Urban County GovernmentDepartment Of Law200 East Main StreetLexington, KENTUCKY 40507

*C HarrisSpilman Thomas & Battle, PLLC1100 Brent Creek Blvd., Suite 101Mechanicsburg, PENNSYLVANIA 17050

*Honorable Lindsey W Ingram, IIIAttorney at LawSTOLL KEENON OGDEN PLLC300 West Vine StreetSuite 2100Lexington, KENTUCKY 40507-1801

*Kentucky Utilities Company220 W. Main StreetP. O. Box 32010Louisville, KY 40232-2010

*Stefanie J KingsleyAssistant Attorney GeneralOffice of the Attorney General Utility & Rate1024 Capital Center DriveSuite 200Frankfort, KENTUCKY 40601-8204

*Honorable Michael L KurtzAttorney at LawBoehm, Kurtz & Lowry36 East Seventh StreetSuite 1510Cincinnati, OHIO 45202

*Amanda M LanhamSheppard Mullin Richter & Hampton LLP1300 I Street NW11th Floor EastWashington, DISTRICT OF COLUMBIA 20005

*Rick E LovekampManager - Regulatory AffairsLG&E and KU Energy LLC220 West Main StreetLouisville, KENTUCKY 40202

*Honorable Matthew R MaloneAttorney at LawHurt, Crosbie & May PLLCThe Equus Building127 West Main StreetLexington, KENTUCKY 40507

*Denotes Served by Email Service List for Case 2014-00371

*Don C A ParkerSpilman Thomas & Battle, PLLC1100 Brent Creek Blvd., Suite 101Mechanicsburg, PENNSYLVANIA 17050

*Honorable Kendrick R RiggsAttorney at LawStoll Keenon Ogden, PLLC2000 PNC Plaza500 W Jefferson StreetLouisville, KENTUCKY 40202-2828

*Casey RobertsStaff AttorneySierra Club85 Second St. Second FloorSan Francisco, CALIFORNIA 94105

*Honorable Iris G Skidmore415 W. Main StreetSuite 2Frankfort, KENTUCKY 40601

*Ed StatonLG&E and KU Energy LLC220 West Main StreetLouisville, KENTUCKY 40202

*Honorable Allyson K SturgeonSenior Corporate AttorneyLG&E and KU Energy LLC220 West Main StreetLouisville, KENTUCKY 40202

*Janice TheriotZielke Law Firm PLLC1250 Meidinger Tower462 South Fourth AvenueLouisville, KENTUCKY 40202

*Honorable Robert M Watt, IIIAttorney At LawSTOLL KEENON OGDEN PLLC300 West Vine StreetSuite 2100Lexington, KENTUCKY 40507-1801

*Laurie WilliamsAssociate AttorneySierra Club50 F Street, NW, Eighth FloorWashington, DISTRICT OF COLUMBIA 20001

*Derrick P WilliamsonSpilman Thomas & Battle, PLLC1100 Brent Creek Blvd., Suite 101Mechanicsburg, PENNSYLVANIA 17050